Cardano (ADA)Crypto News

Cardano whales begin accumulation trend in 2023 which could be bullish for ADA

Cardano (ADA) has seen some pretty tragic price moves over the past few months, pushing its price down to a two-year low. It’s still maintaining this downtrend and barely moving, just like the rest of the crypto market, but some developments among big ADA investors could see some bullish momentum for the digital asset.

Cardano whales begin to rally in the new year

Towards the end of 2022, as momentum in the crypto market waned, there was some selling from large ADA investors. This wasn’t unusual as the holiday season has prompted selling and profit taking in the past.

Cardano-Whales had sold over 569 million ADA in that time. The result was greater selling pressure on the digital asset, which pushed its price below $0.25, its lowest price since early 2021. As Santiment notes, this drastically reduced the total inventory of investors holding between 1 million and 100 million ADA in their accounts just as 2022 was coming to an end.

Cardano whales begin accumulation trend in 2023 which could be bullish for ADA, Crypto Trading News

Cardano whales begin accumulation trend in 2023 which could be bullish for ADA, Crypto Trading News

ADA whales increase stocks | Source: Santiment

However, this investor class seems to have started the new year with renewed vigour, as they have already started buying back the tokens they dumped. The report shows that these big investors have already added more than 217 million ADA to their stash in the first five days of 2023. This brought the percentage of supply they are now holding back to the 57.22% level, not the highest ever but certainly an encouraging number.

ADA enjoys the spoils of accumulation

The price of ADA is already reacting to the number of coins these Cardano whales are buying. In the last 24 hours is the cryptocurrency has bounced back into the green and its price has already climbed back above $0.27.

A continuation of the accumulation trend could potentially result in a much larger breakout for the digital asset, especially now that investor sentiment is faring much better. When this happens, a 10% uptrend that pushes the price of ADA above $0.3 is easily reached.

Cardano whales begin accumulation trend in 2023 which could be bullish for ADA, Crypto Trading News

ADA price trading at $0.26 | Source: ADAUSD on TradingView.com

Perhaps more importantly, the bulls are already building support at the $0.26 level. The successful move from a resistance point to a support point also shows the bulls’ determination to continue the uptrend.

However, there is still a risk of bears dragging down the price of the digital asset, especially if trading volume does not grow as expected. A further drop below $0.25 is likely to take the price of ADA to pre-2021 levels.

Follow Best Owie on Twitter for market insights, updates and the occasional fun tweet… Featured image by Forbes, chart by TradingView.com

Source: Crypto News Deutsch

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